The Federal National Mortgage Association, commonly known as Fannie Mae, was created by the U.S. congress in 1938, in order to maintain liquidity and stability in the domestic mortgage market. The company is a government-sponsored enterprise (GSE), meaning that while it was a publicly traded company for most of its history, it was still supported by the federal government. While there is no legally binding guarantee of shares in GSEs or their securities, it is generally acknowledged that the U.S. government is highly unlikely to let these enterprises fail. Due to these implicit guarantees, GSEs are able to access financing at a reduced cost of interest. Fannie Mae's main activity is the purchasing of mortgage loans from their originators (banks, mortgage brokers etc.) and packaging them into mortgage-backed securities (MBS) in order to ease the access of U.S. homebuyers to housing credit. The early 2000s U.S. mortgage finance boom During the early 2000s, Fannie Mae was swept up in the U.S. housing boom which eventually led to the financial crisis of 2007-2008. The association's stated goal of increasing access of lower income families to housing finance coalesced with the interests of private mortgage lenders and Wall Street investment banks, who had become heavily reliant on the housing market to drive profits. Private lenders had begun to offer riskier mortgage loans in the early 2000s due to low interest rates in the wake of the "Dot Com" crash and their need to maintain profits through increasing the volume of loans on their books. The securitized products created by these private lenders did not maintain the standards which had traditionally been upheld by GSEs. Due to their market share being eaten into by private firms, however, the GSEs involved in the mortgage markets began to also lower their standards, resulting in a 'race to the bottom'. The fall of Fannie Mae The lowering of lending standards was a key factor in creating the housing bubble, as mortgages were now being offered to borrowers with little or no ability to repay the loans. Combined with fraudulent practices from credit ratings agencies, who rated the junk securities created from these mortgage loans as being of the highest standard, this led directly to the financial panic that erupted on Wall Street beginning in 2007. As the U.S. economy slowed down in 2006, mortgage delinquency rates began to spike. Fannie Mae's losses in the mortgage security market in 2006 and 2007, along with the losses of the related GSE 'Freddie Mac', had caused its share value to plummet, stoking fears that it may collapse. On September 7th 2008, Fannie Mae was taken into government conservatorship along with Freddie Mac, with their stocks being delisted from stock exchanges in 2010. This act was seen as an unprecedented direct intervention into the economy by the U.S. government, and a symbol of how far the U.S. housing market had fallen.

United States Fannie Mae: Risk Management Derivatives: Net Contractual Interest Expense on Interest-Rate Swaps data was reported at -218.000 USD mn in Mar 2025. This records an increase from the previous number of -1.227 USD bn for Dec 2024. United States Fannie Mae: Risk Management Derivatives: Net Contractual Interest Expense on Interest-Rate Swaps data is updated quarterly, averaging -215.000 USD mn from Dec 2011 (Median) to Mar 2025, with 51 observations. The data reached an all-time high of 22.000 USD mn in Dec 2021 and a record low of -2.187 USD bn in Dec 2011. United States Fannie Mae: Risk Management Derivatives: Net Contractual Interest Expense on Interest-Rate Swaps data remains active status in CEIC and is reported by Federal National Mortgage Association. The data is categorized under Global Database’s United States – Table US.EB121: Derivatives Fair Value Gains or Losses: Federal National Mortgage Association, Fannie Mae.

Graph and download economic data for 15-Year Fixed Rate Mortgage Average in the United States (MORTGAGE15US) from 1991-08-30 to 2025-07-10 about 15-year, fixed, mortgage, interest rate, interest, rate, and USA.

Type of Mortgage Loan:Conventional Mortgage Loans: Backed by private investors and typically require a down payment of 20% or more.Jumbo Loans: Loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.Government-insured Mortgage Loans: Backed by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), or U.S. Department of Agriculture (USDA).Others: Includes non-QM loans, reverse mortgages, and shared equity programs.Mortgage Loan Terms:30-year Mortgage: The most common term, offering low monthly payments but higher overall interest costs.20-year Mortgage: Offers a shorter repayment period and lower long-term interest costs.15-year Mortgage: The shortest term, providing lower interest rates and faster equity accumulation.Others: Includes adjustable-rate mortgages (ARMs) and balloons loans.Interest Rate:Fixed-rate Mortgage Loan: Offers a stable interest rate over the life of the loan.Adjustable-rate Mortgage Loan (ARM): Offers an initial interest rate that may vary after a certain period, potentially leading to higher or lower monthly payments.Provider:Primary Mortgage Lender: Originates and services mortgages directly to borrowers.Secondary Mortgage Lender: Purchases mortgages from originators and packages them into securities for sale to investors. Key drivers for this market are: Digital platforms and AI-driven credit assessments have simplified the application process, improving accessibility and borrower experience. Potential restraints include: Fluctuations in interest rates significantly impact borrowing costs, affecting loan demand and affordability. Notable trends are: The adoption of online portals and mobile apps is transforming the mortgage process with faster approvals and greater transparency.

Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q1 2025 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

The Federal Housing Finance Agency (FHFA) is an independent regulatory agency that is not part of the Department of Housing and Urban Development (HUD).

The FHFA was established by the Housing and Economic Recovery Act of 2008 (HERA) and is responsible for the effective supervision, regulation, and housing mission oversight of Fannie Mae, Freddie Mac (the Enterprises), Common Securitization Solutions, LLC (CSS), and the Federal Home Loan Bank System, which includes the 11 Federal Home Loan Banks (FHLBanks) and the Office of Finance. Since 2008, FHFA has also served as conservator of Fannie Mae and Freddie Mac.

Conforming Loan Limits are mortgage limits set annually (as required by HERA) by the FHFA. In order for a mortgage loan to be eligible to be insured by Freddie Mac or Fannie Mae, the loan amount must be less than the loan limit. Mortgage exceeding the Conforming Loan Limit are referred to as "non-conforming loans" or "jumbo loans." While most counties use a single set of Conforming Loan Limits based on the number of units, high cost of living counties use higher Conforming Loan Limits. The FHFA analyzes year-over-year change in average home prices in October of each year using the Monthly Interest Rate Survey (MIRS) to adjust the Conforming Loan Limits for the upcoming year.

Geospatial data in this feature service uses the Census 2010 County geographies.

To learn more about about the FHFA, please visit:https://www.fhfa.gov/AboutUs



For more information about FHFA Conforming Loan Limits, please visit:https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx, for questions about the spatial attribution of this dataset, please reach out to us at GISHelpdesk@hud.gov. 

Date of Coverage: 2022 Data Dictionary:DD_FHFA Conforming Loan Limits

Mortgage Backed Security Market Outlook

The global mortgage-backed security (MBS) market size was valued at approximately $2.1 trillion in 2023 and is projected to reach $3.5 trillion by 2032, growing at a CAGR of 5.5%. A key driver of this growth is the increasing demand for mortgage-backed securities due to their ability to provide liquidity and diversify investment portfolios. The growth is further stimulated by favorable government policies and increased homeownership rates, which collectively bolster the issuance of new MBS.

One of the primary growth factors for the MBS market is the low-interest-rate environment, which has persisted over recent years. This scenario has encouraged borrowing and refinancing activities, leading to a higher number of mortgages that can be securitized. Moreover, the stability and relatively lower risk associated with MBS compared to other investment vehicles make them an attractive option for institutional investors. Additionally, advancements in financial technology have streamlined the process of bundling and selling these securities, increasing market efficiency.

Another significant factor contributing to the expansion of the MBS market is the role of government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae. These GSEs guarantee a significant portion of the residential MBS, providing a safety net that minimizes risk for investors. The support from these entities ensures a continuous and reliable flow of investment into the housing sector, which in turn stimulates further securitization of mortgages. Moreover, government policies aimed at bolstering housing finance systems in emerging markets are expected to create additional opportunities for growth.

The diversification of mortgage products, including the rise in demand for commercial mortgage-backed securities (CMBS), is another driving force for the market. Commercial real estate has shown robust growth, and investors are increasingly looking towards CMBS as a way to gain exposure to this sector. The structured nature of these securities, offering tranches with varying risk and return profiles, allows investors to tailor their investment strategies according to their risk tolerance.

In the context of the MBS market, Lenders Mortgage Insurance (LMI) plays a crucial role in facilitating homeownership, especially for borrowers who are unable to provide a substantial down payment. LMI is a type of insurance that protects lenders against the risk of borrower default, allowing them to offer loans with lower down payment requirements. This insurance is particularly significant in markets where home prices are high, and saving for a large deposit is challenging for many potential homeowners. By mitigating the risk for lenders, LMI enables more individuals to enter the housing market, thereby supporting the overall growth of mortgage-backed securities. As a result, LMI not only aids in increasing homeownership rates but also contributes to the liquidity and stability of the housing finance system.

Type Analysis

The mortgage-backed security market is bifurcated into Residential MBS and Commercial MBS. Residential MBS (RMBS) dominate the market due to the larger volume of residential mortgages compared to commercial ones. RMBS are typically backed by residential loans, including home mortgages, and are considered less risky. They offer a steady income stream to investors through mortgage payments made by homeowners. The demand for RMBS is bolstered by the high rate of homeownership and the continuous flow of new mortgages.

On the other hand, Commercial MBS (CMBS) are seeing increased traction due to their attractive yields and the growth of the commercial real estate sector. CMBS are backed by loans on commercial properties such as office buildings, retail centers, and hotels. They offer investors exposure to the commercial property market, which is often less correlated with the residential real estate market, providing an additional layer of diversification. The complexity and higher risk associated with CMBS attract sophisticated investors looking for higher returns.

Within RMBS, the market is further segmented into agency RMBS and non-agency RMBS. Agency RMBS are guaranteed by GSEs, making them more secure and attractive to risk-averse investors. Non-agency RMBS, though not backed by GSEs, offer higher yields and are appealing to investors with a higher risk appetite. The interplay betw